KUALA LUMPUR: Malaysian palm oil futures rose as much as 3.2% on Friday on strong exports and as severe flooding in top producer Indonesia raised supply concerns, but the contract logged its steepest weekly fall in nearly seven months.
Palm has plummeted 8.3% this week tracking weakness in Dalian exchange, its sharpest decline since Feb. 28.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange closed 67 ringgit, or 2.43%, higher at 2,824 ringgit ($678.03) a tonne, after falling for four sessions in a row.
Prices recovered after media reports of Indonesia's Central Kalimantan and West Kalimantan administration declaring a state of emergency after two weeks of massive flooding, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.
Exports from Malaysia during Sept. 1 to Sept. 25 jumped between 6.9% and 14.1% from the month before, cargo surveyors said. Dalian's most-active soyaoil contract fell 0.4%, while its palm oil contract slipped 1.14%.
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